Quarterly Report March 2018

10 May 2018

Overview

London, 10 May 2018 – Randgold Resources said today its 2018 production guidance remained intact despite a softer first quarter in which it contended with multiple challenges.

Following the full commissioning of its underground mine, Kibali in the Democratic Republic of Congo increased quarterly production by 22% compared to the corresponding quarter of the prior year and is on track to achieve its 2018 target of 730 000 ounces.

In Côte d’Ivoire, Tongon’s production was impacted by a series of work stoppages. With operations now back at full capacity, the mine is committed to clawing back most of the lost production. Randgold’s flagship operation, the Loulo-Gounkoto complex, made a strong start to the year although changes in the mining schedule affected the underground grade, impacting on production.

Results for the quarter, published today, show group production lower at 286 890 ounces (Q4 2017: 340 958 ounces) and total cash cost per ounce higher at $720/oz (Q4 2017: $627/oz). Profit was down at $66.5 million (Q4 2017: $87.1 million). Cash and cash equivalents grew by 3% to $739.5 million while the company remains debt-free. At the recently held AGM, shareholders approved the 2017 dividend of $2 per share, a 100% increase on the previous year.

Chief executive Mark Bristow said coming off a strong prior quarter and record performance in 2017 the company had anticipated a slower start to this year with a gradual build-up throughout the year. Despite the issues that arose, it was still confident of meeting its annual production guidance of 1.30 to 1.35 million ounces.

“It was a very active quarter, in which we ramped up the underground production at Kibali, advanced the Gounkoto super pit project and the development of the Baboto satellite pit at Loulo, and prepared the Ntiola satellite deposit at Morila for mining,” Bristow said.

“At the same time we also successfully handled the difficult labour situation at Tongon, sorted out the sequencing at Loulo and continued negotiations relating to the new mining code with the DRC government. This demonstrates the depth and competence of our management team, and its ability to deal with complex operational and socio-political issues on multiple fronts.”

During the quarter, exploration highlighted the potential to add ounces at Kibali, Loulo and Tongon as well as new reserve opportunities at the Massawa project in Senegal. Bristow said Randgold was also aggressively hunting for its next big project in the African gold belts as well as further afield.

Quarterly Report March 2018

10 May 2018

Downloads

Quarterly Report March 2018

10 May 2018

Summarised Financial Information

Quarterly Report March 2018

10 May 2018

Comments

COMMENTS ON THE QUARTER ENDED 31 MARCH 2018

Gold sales for the quarter of $391.8 million decreased by 10% from $434.8 million in the previous quarter. The number of gold ounces sold for the quarter was 13% down on the previous quarter following lower production at the Loulo-Gounkoto complex, Tongon and Morila. The average gold price received of $1 331/oz increased by 4% quarter on quarter (Q4 2017: $1 278/oz). Gold sales decreased by 4% from the corresponding quarter of 2017, reflecting the 12% lower ounces sold in the current quarter, offset by a 9% higher average gold price received (Q1 2017: $1 220/oz).

Total cash costs for the quarter of $211.9 million was slightly down on the prior quarter and up 2% from the corresponding quarter of 2017. Costs were slightly lower at Tongon, on the back of lower throughput, but offset by increased costs at Kibali, mainly relating to increased mining unit costs (increased strip ratio) and power costs. However, total cash cost per ounce of $720/oz increased by 15% quarter on quarter and increased by 16% compared to the corresponding quarter in 2017. The increase quarter on quarter is mainly the result of planned lower ore grades being mined and fed at the Loulo-Gounkoto complex, compared to prior quarter, resulting in lower production, while employee work stoppages at Tongon’s mining subcontractor also resulted in lower throughput and production.

Profit from mining dropped by 19% to $179.9 million from the previous quarter, and by 11% on the corresponding quarter of 2017. The decrease from the prior quarter and from the corresponding quarter of 2017 reflects the drop in production and increased costs as explained above.

Exploration and corporate expenditure of $15.8 million increased by 30% quarter on quarter, and by 45% compared to the corresponding quarter in 2017, principally due to increased greenfields exploration expenditure during the quarter, especially drilling.

Depreciation and amortisation of $46.7 million dropped by 9% from the previous quarter and increased by 20% against the corresponding quarter of 2017. The decrease quarter on quarter is due to lower throughput at Tongon and Loulo offset by slightly higher throughput at Gounkoto. The increase on the corresponding quarter of 2017 was due to higher throughput at the Loulo-Gounkoto complex as well as increases in the asset bases of both Loulo (capitalised underground development) and Gounkoto (deferred stripping asset).

Other income in the quarter of $8.5 million increased from the previous quarter, as well as the corresponding quarter of the prior year. Management fees from Kibali and Morila of $1.4 million were in line with the previous quarter and the corresponding quarter of the prior year. The increase from the prior quarter, as well as the corresponding quarter in 2017, is the result of a net operational foreign exchange gain of $7.1 million that was included in other income during the current quarter. These gains and losses arise from the settlement of invoices in currencies other than the US dollar, as well as the translation of balances denominated in currencies such as the CFA, euro and South African rand to the US dollar rate and reflects the movements in these currencies during the respective quarter.

Share of profits from equity accounted joint ventures was $13.8 million compared to share of profits from joint ventures of $13.7 million in the previous quarter and to share of losses of $5.2 million in Q1 2017. Kibali’s share of equity accounted joint venture profits was $12.7 million in the current quarter compared to a profit of $15.0 million in Q4 2017. Profit from mining (attributable) for Kibali for Q1 2018 was $48.0 million compared to a profit of $46.2 million in Q4 2017, reflecting higher gold sales and slightly improved recovery offset by higher cash costs. The share of profits from the Kibali joint venture is stated after depreciation of $39.4 million (Q4 2017: $28.3 million), foreign exchange losses of $0.3 million (Q4 2017: $1.3 million) and a deferred tax credit of $3.2 million (Q4 2017: $0.4 million). The foreign exchange losses are the result of the depreciation in the Congolese franc compared to the US dollar which negatively impacted the conversion of TVA (value added tax) balances owed to Kibali which are denominated in Congolese franc. The increase in the tax credit quarter on quarter was a result of a decrease in the deferred tax asset associated with tax losses/allowances carried forward.

Morila’s share of equity accounted joint venture profits increased to a profit of $0.9 million from a loss of $1.5 million in Q4 2017 and a loss of $0.2 million in Q1 2017, following tight cost control and improved throughput.

Income tax expense of $20.7 million was 24% lower than the charge in previous quarter (Q4 2017: $27.2 million) and decreased by 40% from the corresponding quarter in 2017, mainly due to decreased profits at Loulo, Gounkoto and Tongon.

Profit for the quarter of $66.5 million was down 24% from the previous quarter and 22% from the corresponding quarter of 2017. The movement quarter on quarter reflects the decrease in profit from mining, partially offset by the decreased depreciation and other charges during the quarter as explained above. The decrease from the corresponding quarter of 2017 mainly reflects the decrease in profit from mining.

Basic earnings per share decreased by 24% to $0.61 quarter on quarter (Q4 2017: $0.80), reflecting the lower profits. Compared to the corresponding quarter in 2017, basic earnings per share decreased by 18%.

Net cash generated from operating activities for the quarter of $64.0 million decreased by 61% from the previous quarter and by 52% from the corresponding quarter in 2017. The decrease quarter on quarter primarily reflects the movement in profits from operations as well as outstanding receipts for gold sold at the Loulo-Gounkoto complex at current quarter end ($29.7 million).

Quarterly Report March 2018

10 May 2018

Overview

London, 10 May 2018 – Randgold Resources said today its 2018 production guidance remained intact despite a softer first quarter in which it contended with multiple challenges.

Following the full commissioning of its underground mine, Kibali in the Democratic Republic of Congo increased quarterly production by 22% compared to the corresponding quarter of the prior year and is on track to achieve its 2018 target of 730 000 ounces.

In Côte d’Ivoire, Tongon’s production was impacted by a series of work stoppages. With operations now back at full capacity, the mine is committed to clawing back most of the lost production. Randgold’s flagship operation, the Loulo-Gounkoto complex, made a strong start to the year although changes in the mining schedule affected the underground grade, impacting on production.

Results for the quarter, published today, show group production lower at 286 890 ounces (Q4 2017: 340 958 ounces) and total cash cost per ounce higher at $720/oz (Q4 2017: $627/oz). Profit was down at $66.5 million (Q4 2017: $87.1 million). Cash and cash equivalents grew by 3% to $739.5 million while the company remains debt-free. At the recently held AGM, shareholders approved the 2017 dividend of $2 per share, a 100% increase on the previous year.

Chief executive Mark Bristow said coming off a strong prior quarter and record performance in 2017 the company had anticipated a slower start to this year with a gradual build-up throughout the year. Despite the issues that arose, it was still confident of meeting its annual production guidance of 1.30 to 1.35 million ounces.

“It was a very active quarter, in which we ramped up the underground production at Kibali, advanced the Gounkoto super pit project and the development of the Baboto satellite pit at Loulo, and prepared the Ntiola satellite deposit at Morila for mining,” Bristow said.

“At the same time we also successfully handled the difficult labour situation at Tongon, sorted out the sequencing at Loulo and continued negotiations relating to the new mining code with the DRC government. This demonstrates the depth and competence of our management team, and its ability to deal with complex operational and socio-political issues on multiple fronts.”

During the quarter, exploration highlighted the potential to add ounces at Kibali, Loulo and Tongon as well as new reserve opportunities at the Massawa project in Senegal. Bristow said Randgold was also aggressively hunting for its next big project in the African gold belts as well as further afield.

Quarterly Report March 2018

10 May 2018

Downloads

Quarterly Report March 2018

10 May 2018

Summarised Financial Information

Quarterly Report March 2018

10 May 2018

Comments

COMMENTS ON THE QUARTER ENDED 31 MARCH 2018

Gold sales for the quarter of $391.8 million decreased by 10% from $434.8 million in the previous quarter. The number of gold ounces sold for the quarter was 13% down on the previous quarter following lower production at the Loulo-Gounkoto complex, Tongon and Morila. The average gold price received of $1 331/oz increased by 4% quarter on quarter (Q4 2017: $1 278/oz). Gold sales decreased by 4% from the corresponding quarter of 2017, reflecting the 12% lower ounces sold in the current quarter, offset by a 9% higher average gold price received (Q1 2017: $1 220/oz).

Total cash costs for the quarter of $211.9 million was slightly down on the prior quarter and up 2% from the corresponding quarter of 2017. Costs were slightly lower at Tongon, on the back of lower throughput, but offset by increased costs at Kibali, mainly relating to increased mining unit costs (increased strip ratio) and power costs. However, total cash cost per ounce of $720/oz increased by 15% quarter on quarter and increased by 16% compared to the corresponding quarter in 2017. The increase quarter on quarter is mainly the result of planned lower ore grades being mined and fed at the Loulo-Gounkoto complex, compared to prior quarter, resulting in lower production, while employee work stoppages at Tongon’s mining subcontractor also resulted in lower throughput and production.

Profit from mining dropped by 19% to $179.9 million from the previous quarter, and by 11% on the corresponding quarter of 2017. The decrease from the prior quarter and from the corresponding quarter of 2017 reflects the drop in production and increased costs as explained above.

Exploration and corporate expenditure of $15.8 million increased by 30% quarter on quarter, and by 45% compared to the corresponding quarter in 2017, principally due to increased greenfields exploration expenditure during the quarter, especially drilling.

Depreciation and amortisation of $46.7 million dropped by 9% from the previous quarter and increased by 20% against the corresponding quarter of 2017. The decrease quarter on quarter is due to lower throughput at Tongon and Loulo offset by slightly higher throughput at Gounkoto. The increase on the corresponding quarter of 2017 was due to higher throughput at the Loulo-Gounkoto complex as well as increases in the asset bases of both Loulo (capitalised underground development) and Gounkoto (deferred stripping asset).

Other income in the quarter of $8.5 million increased from the previous quarter, as well as the corresponding quarter of the prior year. Management fees from Kibali and Morila of $1.4 million were in line with the previous quarter and the corresponding quarter of the prior year. The increase from the prior quarter, as well as the corresponding quarter in 2017, is the result of a net operational foreign exchange gain of $7.1 million that was included in other income during the current quarter. These gains and losses arise from the settlement of invoices in currencies other than the US dollar, as well as the translation of balances denominated in currencies such as the CFA, euro and South African rand to the US dollar rate and reflects the movements in these currencies during the respective quarter.

Share of profits from equity accounted joint ventures was $13.8 million compared to share of profits from joint ventures of $13.7 million in the previous quarter and to share of losses of $5.2 million in Q1 2017. Kibali’s share of equity accounted joint venture profits was $12.7 million in the current quarter compared to a profit of $15.0 million in Q4 2017. Profit from mining (attributable) for Kibali for Q1 2018 was $48.0 million compared to a profit of $46.2 million in Q4 2017, reflecting higher gold sales and slightly improved recovery offset by higher cash costs. The share of profits from the Kibali joint venture is stated after depreciation of $39.4 million (Q4 2017: $28.3 million), foreign exchange losses of $0.3 million (Q4 2017: $1.3 million) and a deferred tax credit of $3.2 million (Q4 2017: $0.4 million). The foreign exchange losses are the result of the depreciation in the Congolese franc compared to the US dollar which negatively impacted the conversion of TVA (value added tax) balances owed to Kibali which are denominated in Congolese franc. The increase in the tax credit quarter on quarter was a result of a decrease in the deferred tax asset associated with tax losses/allowances carried forward.

Morila’s share of equity accounted joint venture profits increased to a profit of $0.9 million from a loss of $1.5 million in Q4 2017 and a loss of $0.2 million in Q1 2017, following tight cost control and improved throughput.

Income tax expense of $20.7 million was 24% lower than the charge in previous quarter (Q4 2017: $27.2 million) and decreased by 40% from the corresponding quarter in 2017, mainly due to decreased profits at Loulo, Gounkoto and Tongon.

Profit for the quarter of $66.5 million was down 24% from the previous quarter and 22% from the corresponding quarter of 2017. The movement quarter on quarter reflects the decrease in profit from mining, partially offset by the decreased depreciation and other charges during the quarter as explained above. The decrease from the corresponding quarter of 2017 mainly reflects the decrease in profit from mining.

Basic earnings per share decreased by 24% to $0.61 quarter on quarter (Q4 2017: $0.80), reflecting the lower profits. Compared to the corresponding quarter in 2017, basic earnings per share decreased by 18%.

Net cash generated from operating activities for the quarter of $64.0 million decreased by 61% from the previous quarter and by 52% from the corresponding quarter in 2017. The decrease quarter on quarter primarily reflects the movement in profits from operations as well as outstanding receipts for gold sold at the Loulo-Gounkoto complex at current quarter end ($29.7 million).